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Colorado Technical University Purpose of a Budget for Organizations Discussion

Colorado Technical University Purpose of a Budget for Organizations Discussion

Question Description

I’m working on a business discussion question and need support to help me study.

Purpose of a Budget

Budgeting for organizations is not very different from budgeting for a single organization, though the scale may be different.

  • Government organizations prepare budget requests to a legislative body. Ultimately, the budget is set by the decision of that body.
  • Similarly, executives in for-profit organizations offer a budget that projects incoming revenues against expenses and desired profit to a corporate or business finance board.
  • Nonprofits also develop budgets at the executive level, but in consultation with board members and key program personnel, projecting possible funding levels from grants, contracts, and services. Then, they project the expenses for carrying out the mission and the programs.
  • Mixed (hybrid) organizations perform virtually the same process as organizations in the other sectors, but the budget reflects legislative or board mandates if the organization is a government/nonprofit partnership. If it is a for-profit/nonprofit partnership, then the revenue streams used to set the budget are defined by each of the partners, and then configured as a single budget.

Review the Developing a Budget document in the Strategic Planning for Human Services Professionals multimedia scatterdesk, and draw on the Internet links provided to discuss the purpose of a budget and key accepted principles for developing a budget for your chosen organization for the course project.

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